The Gambling Commission believes publishers should be more proactive in preventing players from coming across gambling during video games.
While recent emphasis has been placed on football game Fifa and the practice of buying loot boxes, the regulator says it receives "the most inquiries" about Counter-Strike: Global Offensive (CS:GO).
CS:GO publisher Valve Corporation has previously co-operated with the Commission, closing specific games which have been brought to Valve's attention.
However, Gambling Commission Programme Director Brad Enright believes this approach is not "sustainable" and wants game publishers to do more.
He told politicians: "The popular game Counter-Strike: Global Offensive is the game we’ve seen the most inquiries about.
"We’ve had dialogue with Valve Corporation. Where we draw their attention to particular games when British consumers including children are gambling on those sites, they have closed them down.
"We’ve said that’s not a sustainable approach. They’ve created this situation and there’s an onus and responsibility on them to address the by-product of how they’re operating."
For further analysis on video games and loot boxes, click here to read Gambling Insider’s feature on the topic.